Rural hospitals worse off in states without extended Medicaid: report

Median operating margins for rural hospitals are consistently higher in states that have expanded Medicaid than in states that have not, according to a February 23 report by the Kaiser Family Foundation.

Between July 2021 and June 2022, the average operating margin for rural hospitals was 3.9 percent in states that expanded Medicaid, compared with 2.2 percent in states that did not, according to the report. These figures are based on data from 438 hospitals analyzed by the Kaiser Family Foundation.

Rural hospitals would have faced even greater challenges were it not for federal COVID-19 relief funds, according to the report. Median operating margins fall to 1.2% in states with expansion and to -0.7% in states without expansion, after subtracting documented aid funds.

Nearly a third of all rural hospitals in the country are in 11 states that have not approved expansion, according to the report.

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